Aluminum use will keep premiums ‘solid’ in 2010: Kleinfeld

Alcoa Inc. expects regional aluminum premiums to remain solid throughout 2010 as global consumption increases 10 percent and a significant majority of London Metal Exchange stocks remain locked up in warehousing deals.

Midwest spot aluminum premiums of 6.25 to 6.5 cents per pound are near five-year highs, and Klaus Kleinfeld, Alcoa's president and chief executive officer, said during a conference call that the pressure remains to the upside.

"There's improved demand, strong interest continues from financial participants, logistic constraints, U.S. distributor stocks are at an all-time low, all of which really leads to a very tight supply chain situation and continues to drive the regional premiums," Kleinfeld said.